By Brazil Stock Guide — Raízen said on Friday that creditor support for its out-of-court restructuring plan had risen to 80.15% of restructured claims, up from 75.45% previously, giving the Brazilian sugar, ethanol and fuel distribution group additional backing as it seeks to repair its balance sheet.
The plan covers R$64.7 billion in financial and unsecured claims subject to the restructuring process, excluding intercompany debt, the company said in a market notice.
The increase in creditor adherence is relevant because Raízen had already crossed the key support threshold needed to move forward with the plan. The additional backing reduces execution risk and signals broader acceptance among financial creditors of a deal designed to address short- and medium-term liquidity pressures.
Raízen, a joint venture between Shell and Cosan, has been under pressure after a period of heavy investment, high financing costs and operational challenges in its sugar and ethanol business strained cash flow. The company has said the restructuring is aimed at creating a more sustainable long-term capital structure.
Under previously reported terms, the plan includes a debt-to-equity conversion for part of the restructured claims, the replacement or refinancing of the remaining debt through new instruments, and a capital injection led by Shell. A vehicle linked to Rubens Ometto, Cosan’s controlling shareholder, may also contribute additional capital.
The restructuring is one of the largest ever pursued by a Brazilian company under an out-of-court process and is expected to reshape Raízen’s capital structure, shareholder base and financial flexibility.
Raízen said the new creditor support “ratifies the broad adherence” to the plan as a comprehensive solution for the group’s financial debt restructuring.
The company said it would keep shareholders and the market informed of any relevant developments.